C.R. Bard Posts 9 Percent Spike in 2014 Sales

C.R. Bard’s strategic growth plan is beginning to pay off.

Full-year net sales rose 9 percent to $3.3 billion and net income skyrocketed 23 percent to $586 million, or $8.40 diluted earnings per share, according to a company news release. Chairman/CEO Timothy M. Ring attributed the strong results to an investment plan executives set in motion roughly in early 2013.

“Two years ago we announced a strategic investment plan with the objective to shift the mix of the portfolio to faster growth through investments in emerging markets and new product development,” Ring said. “We said at the time that we expected the early returns from those investments to begin in the back half of 2014. We are pleased with the performance of our investment plan so far, as we delivered accelerating organic revenue growth throughout 2014. We remain focused on executing our plan with the objective of improving the long-term growth profile of the company in a profitable manner that adds value for shareholders.”

Fourth-quarter results were particularly robust, with net sales jumping 11 percent. U.S. revenue surged 14 percent, while International sales inched up 1 percent (5 percent at constant currency) compared with Q4 2013. At constant currency, Europe, Japan, and other International territories grew 3 percent, 2 percent and 8 percent, respectively. Meanwhile, emerging market sales accounted for 9 percent of total sales in the quarter.

Gore royalty revenues were approximately $38.6 million in the year’s final quarter. Organic sales grew 6.3 percent on the back of an early approval and launch of Lutonix drug-coated PTA balloon in the United States.

Vascular product sales increased 19.5 percent year over year (22 percent at constant currency) to $244.6 million. Excluding the royalty payment from Gore and the impact from the divestiture of the Electrophysiology business, Vascular sales climbed 9 percent globally. U.S. proceeds soared 14 percent but international sales rose a modest 3 percent.

Surgical graft revenue fell 6 percent in the quarter. Endovascular sales grew 11 percent, excluding the royalty payment from Gore.

Biopsy products proceeds climbed 1 percent, but stent sales plummeted 10 percent in the quarter. Vena cava filter line revenue remained nearly flat on a year–over-year basis.

Urology sales increased 7.6 percent from the year-ago quarter (9 percent at constant currency) to $217.8 million. U.S. revenue increased 6 percent, while international proceeds improved 14 percent, fueled significantly by the sale of products acquired from Rochester Medical.

Within Urology, sales from the basic drainage business increased 7 percent globally, with about 4 percent of growth generated from the acquired Rochester medical products. I.C. Foley’s revenue was down 2 percent globally and also declined 4 percent in the United States. Sales from the continence business soared 24 percent in the quarter, mainly driven by synergies from the Rochester Medical products.

Sales from neurological specialties grew 11 percent while that from the StatLock catheter stabilization line declined 3 percent in the fourth quarter. Brachytherapy product sales decreased 3 percent globally.

Oncology proceeds increased 7.8 percent (9 percent at constant currency) to $237.5 million. U.S. sales were up 7 percent and non-U.S. revenue shot up 15 percent. Peripherally inserted central catheter sales grew 11 percent in the quarter with continued strong performance in the United States, Europe and the emerging markets. Port line sales were up 5 percent year over year with significant growth coming from emerging markets.

Meanwhile, sales from the vascular access ultrasound product line were up 8 percent. Lastly, sales from the dialysis catheter business rose 11 percent in the quarter.

Surgical Specialties proceeds increased 3.1 percent (4 percent at constant currency) to $145 million. U.S. sales increased 4 percent while international revenue was up 6 percent. Sales from the soft tissue repair business grew 5 percent. Within soft tissue, synthetic hernia products sales posted a double-digit rise from the year-ago quarter. However, Bard reported declines of 15 percent, 3 percent and 4 percent in revenue from its natural tissue product line, hernia fixation business and performance irrigation business, respectively.

Sales from the other products fell 3.9 percent (or 12 percent in constant currency) to $22.3 million.